Brief introduction of foreign exchange market classification

Hello, there are many kinds of foreign exchange, which can be divided into free foreign exchange and bookkeeping foreign exchange according to whether it is freely convertible or not. According to its source and use, it can be divided into trade foreign exchange and non-trade foreign exchange; According to the delivery period of the transaction, it can be divided into spot foreign exchange and forward foreign exchange. In China's foreign exchange banking business, it is often necessary to distinguish between foreign exchange cash and cash.

Foreign currency cash refers to foreign banknotes and coins. Foreign currency cash is mainly brought in from abroad.

Foreign currency cash refers to the free foreign exchange in the local bank deposit account of the currency issuing country. The so-called free foreign exchange refers to foreign exchange that can be freely bought and sold in the international financial market, widely used in international settlement, internationally recognized and freely convertible into other countries' currencies. Foreign exchange cash is mainly remitted from abroad, or foreign currency bills brought or sent from abroad are collected by banks and deposited after receipt.

Under normal circumstances, the subject matter of various foreign exchange can only be actually settled internationally, that is, cash exchange, after being converted into deposit currency in the deposit account of the local bank in the currency issuing country.

All foreign paper money is not necessarily foreign exchange. Whether foreign paper money is called foreign exchange depends first on whether it can be freely exchanged, or whether it can be returned to other countries and deposited into the general account of any commercial bank in that country without restrictions. And you can transfer money at will when you need it, so it can be called foreign exchange.